Bitcoin has seen no significant uptrend following the massive decline it had last week. It ended the fifth day with losses exceeding 7%, slipping from $121,695 to $109,683.
The coin had a massive pullback on Sunday, reclaiming $115k. However, since Tuesday, it’s been on a downtrend and has lost over 9%. It is currently grappling with significant selling pressure.
Nonetheless, recent data from Coinglass shows a gradual increase in trading in the derivatives market. Volume has since increased by 54% as liquidations exceed $700 million, with long positions accounting for $538 million.
BTC had another sharp decline a few minutes ago, dropping to a low of $104,490. However, the 4-hour chart shows more movements as the asset surged to a high of $109,261 a few hours ago. While it trades close to $115k, there are indications of further retracement.
Bitcoin Flips Several Demand Levels
During the previous decline, an analysis cited the $106k mark as a critical level. It also pointed to prices hovering around $110k. BTC is trading below these levels, suggesting that it may be on a freefall again.
Currently trading around $105k, previous price movements noted slight demand concentration. The 1-day chart indicates that there’s no strong support once the bears decisively flip the mark. Bitcoin’s next key level is around $100k.
Aside from the 1-day chart, recent reports from Glassnode noted that the asset is trading between key support levels. Its current price is close to $107.4k, and the 200DMA is above $99.9k(the 360DMA). A slip below the 360DMA could result in further declines. However, reclaiming the 200DMA may trigger further increases.
Recent data from CryptoQuant suggests growing bullish sentiment among traders. As a result, they’ve resumed accumulation, resulting in exchange reserves slightly declining. However, funding rates in the derivative market plummeted, and the taker buy-sell ratio is below 1.
Additionally, there is a growing number of short positions. Data from Coinglass reveals that they make up more than 52% of the total positions at the time of writing.
